Erebor, the crypto-focused national bank backed by Palmer Luckey, has raised more than $7 billion in deposits and attracted over 500 customers since its opening, according to the Financial Times on October 6.
This returns technology and cryptocurrency deposits to a specialized bank just three years after Silvergate’s demise. The main question now is whether Erebor will be able to steer clear of a similar disaster, with depositors racing to withdraw their cash.
So far, Erebor is taking a cautious approach. It is keeping much of that money liquid instead of lending it aggressively.
